10 U.S. Code § 1402 - Recomputation of retired or retainer pay to reflect later active duty of members who first became members before September 8, 1980

(a)A member of an armed force who first became a member of a uniformed service before September 8, 1980, and who has become entitled to retired pay or retainer pay, and who thereafter serves on active duty (other than for training), is entitled to recompute his retired pay or retainer pay upon his release from that duty according to the following table.

Column 1 Take

Column 2 Multiply by

Monthly basic pay 1 of the grade in which he would be eligible—

(1) to retire if he were retiring upon that release from active duty; or

(2) to transfer to the Fleet Reserve or Fleet Marine Corps Reserve if he were transferring to either upon that release from active duty.

21/2 percent of the sum of—

(1) the years of service that may be credited to him in computing retired pay or retainer pay; and

(2) his years of active service after becoming entitled to retired pay or retainer pay.2

1 For a member who has been entitled, for continuous period of at least two years, to basic pay under the rates of basic pay in effect upon that release from active duty, compute under those rates. For a member who has been entitled to basic pay for a continuous period of at least two years upon that release from active duty, but who is not covered by the preceding sentence, compute under the rates of basic pay replaced by those in effect upon that release from active duty. For any other member, compute under the rates of basic pay under which the member’s retired pay or retainer pay was computed when he entered on that active duty.

2 Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month.

However, an officer who was ordered to active duty (other than for training) in the grade that he holds on the retired list under former section
6150 of this title, or under any other law that authorized advancement on the retired list based upon a special commendation for the performance of duty in actual combat, may have his retired pay recomputed under this subsection on the basis of the rate of basic pay applicable to that grade upon his release from that active duty only if he has been entitled, for a continuous period of at least three years, to basic pay at that rate. If, upon his release from that active duty, he has been entitled to the basic pay of that grade for a continuous period of at least three years, but he does not qualify under the preceding sentence, he may have his retired pay recomputed under this subsection on the basis of the rate of basic pay prescribed for that grade by the rates of basic pay replaced by those in effect upon his release from that duty.

(b)A member of an armed force who first became a member of a uniformed service before September 8, 1980, and who has been retired other than for physical disability, and who while on active duty incurs a physical disability of at least 30 percent for which he would otherwise be eligible for retired pay under chapter
61 of this title, is entitled, upon his release from active duty, to retired pay under subsection (d).

(c)A member of an armed force who first became a member of a uniformed service before September 8, 1980, and who—

(1)was retired for physical disability under section
1201 or
1204 of this title or any other law or whose name is on the temporary disability retired list;

(2)incurs, while on active duty after retirement or after his name was placed on that list, a physical disability that is in addition to or that aggravates the physical disability for which he was retired or for which his name was placed on the temporary disability retired list; and

is entitled, upon his release from active duty, to retired pay under subsection (d).

(d)A member of an armed force covered by subsection (b) or (c) may elect to receive either

(1) the retired pay to which he became entitled when he retired, increased by any applicable adjustments in that pay under section
1401a of this title after he initially became entitled to that pay, or

(2) retired pay computed according to the following table.

Column 1 Take

Column 2 Multiply by

Column 3 Add

Highest monthly basic pay that member received while on active duty after retirement or after date when his name was placed on temporary disability retired list, as the case may be.

As member elects—

(1) 21/2% of years of service credited under section 1208 of this title; 1 or

(2) the highest percentage of disability, not to exceed 75%, attained while on active duty after retirement or after the date when his name was placed on temporary disability retired list, as the case may be.1

Add amount necessary to increase product of columns 1 and 2 to 50% of pay upon which computation is based, if member is on temporary disability retired list.

1 Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month.

If, while on active duty after retirement or after his name was placed on the temporary disability retired list, a member covered by this subsection was promoted to a higher grade in which he served satisfactorily, as determined by the Secretary concerned, he is entitled to retired pay based on the monthly basic pay to which he would be entitled if he were on active duty in that higher grade.

(e)Notwithstanding subsection (a), a member covered by that subsection may elect, upon his release from active duty, to have his retired pay or retainer pay—

(1)computed according to the formula set forth in subsection (a) but using the rate of basic pay under which his retired pay or retainer pay was computed when he entered on active duty; and

(2)increased by any applicable adjustments in that pay under section
1401a of this title after he initially became entitled to that pay.

(f)

(1)In the case of a member who is entitled to recompute retired pay under this section upon release from active duty served after retiring under section
3914 or
8914 of this title, the member’s retired pay as recomputed under another provision of this section shall be increased by 10 percent of the amount so recomputed if the member has been credited by the Secretary concerned with extraordinary heroism in the line of duty during any period of active duty service in the armed forces.

(2)The amount of the retired pay as recomputed under another provision of this section and as increased under paragraph (1) may not exceed the amount equal to 75 percent of the monthly rate of basic pay upon which the recomputation of such retired pay is based.

(3)The determination of the Secretary concerned as to extraordinary heroism is conclusive for all purposes.

37:272(d) (last proviso, less 1st 128 words, and less applicability to retired grade).

In subsection (a), columns 1 and 2 of the table are based on 37:316 (1st proviso). Column 4 is based on 37:316 (last proviso). Footnote 1 is based on 37:316 (2d proviso). 37:316 (3d proviso) is omitted as operationally obsolete.

In subsections (a) and (d), the words “and disregard a part of a year that is less than six months” are added to footnote 1 to conform to footnote 3 of section
1401 of this title.

In subsection (b), the words “for which he would otherwise be eligible for retired pay under chapter
61 of this title” are substituted for the words “in accordance with the standard schedule of rating disabilities in current use by the Veterans’ Administration” and “if qualified”.

In subsection (c), the requirement that the physical disability incurred be 30 percent or more is omitted as surplusage, since it is also required that the member be qualified for physical disability retirement under section
1201 or
1204 of this title.

In subsection (d), the rules stated in 37:316 (2d and last provisos) are repeated in column 4 of the table and the footnote to the table, since they apply to all cases of increased pay for active duty performed after retirement.

Codification

Another section 304(b)(3) ofPub. L. 99–348amended the table of sections at the beginning of chapter
571 of this title.

Amendments

2011—Subsec. (d). Pub. L. 111–383, in column 2 of table, inserted “, not to exceed 75%,” after “percentage of disability” and struck out column 4 of table which related to subtraction of excess over 75 percent of pay upon which computation is based.

2008—Subsec. (a). Pub. L. 110–181struck out column 3 of the table, which related to subtraction of excess over 75 percent of pay upon which computation is based.

1986—Pub. L. 99–348, § 304(b)(3), inserted “of members who first became members before September 8, 1980” in section catchline.

Subsec. (a). Pub. L. 99–348, §§ 201(b)(3),
304(a)(3), struck out “(as defined in section
1407(a)(2) of this title)” after “uniformed service” and struck out provision that if the amount recomputed is not a multiple of $1, it be rounded to the next lower multiple of $1. See section
1412 of this title.

Subsec. (d). Pub. L. 99–348, § 201(b)(3), struck out provision that if the amount recomputed is not a multiple of $1, it be rounded to the next lower multiple of $1. See section
1412 of this title.

1983—Subsec. (a). Pub. L. 98–94, § 922(a)(3), substituted “according to the following table. The amount recomputed, if not a multiple of $1, shall be rounded to the next lower multiple of $1.” for “as follows:”.

Pub. L. 98–94, § 923(a)(1), (2)(B), in footnote 2 of table, substituted “Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month” for “Before applying percentage factor, credit a part of a year that is six months or more as a whole year, and disregard a part of a year that is less than six months”.

Subsec. (d). Pub. L. 98–94, § 922(a)(4), substituted “according to the following table. The amount computed, if not a multiple of $1, shall be rounded to the next lower multiple of $1.” for “as follows:”.

Pub. L. 98–94, § 923(a)(1), (2)(C), in footnote 1 of table, substituted “Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month” for “Before applying percentage factor, credit a part of a year that is six months or more as a whole year, and disregard a part of a year that is less than six months”.

1980—Subsecs. (a) to (c). Pub. L. 96–513substituted “a uniformed service (as defined in section
1407(a)(2) of this title) before September 8, 1980” for “the armed forces before the date of the enactment of the Department of Defense Appropriation Act, 1981” wherever appearing.

Pub. L. 96–342inserted “who first became a member of the armed forces before the date of the enactment of the Department of Defense Authorization Act, 1981, and” after “of an armed force” wherever appearing.

1967—Subsec. (d). Pub. L. 90–207, § 2(a)(2)(A), inserted “increased by any applicable adjustments in that pay under section
1401a of this title after he initially became entitled to that pay” after “retired,”.

1963—Subsec. (a). Pub. L. 88–132substituted in introductory clause “who has become entitled to retired pay or retainer pay” for “who has been retired or has become entitled to retainer pay” and “to recompute his retired pay or retainer pay upon his release from that duty” for “, upon release from that duty, to recompute his retired or retainer pay” and inserted in such clause “(other than for training)” after “active duty”; substituted in column 1 of table “Monthly basic pay” for “Monthly basic pay or base and longevity pay, as the case may be,”, designated existing provisions as (1) and added (2); substituted in (1) of column 2 of the table “retired pay or retainer pay” for “retired or retainer pay” and in (2) of such column 2 “after becoming entitled to retired pay or retainer pay” for “after retirement or becoming entitled to retainer pay”, struck out column 3 relating to addition and redesignated column 4 as 3; added footnote 1 to the table and redesignated former footnote 1 as 2; and inserted provisions for recomputation of retired pay upon release from active duty of officers ordered to active duty in a higher grade based upon special commendation for performance of duty in actual combat.

1960—Subsec. (a). Pub. L. 86–559prohibited recomputation of retired pay under subsec. (a) on the basis of any period of active duty that was of less than six consecutive months’ duration or on the basis of any active duty for training for a reserve officer who is or has been retired under section
3911,
6323, or
8911 of this title or under section
232 of title
14.

Effective Date of 2011 Amendment

Amendment by Pub. L. 111–383applicable to persons who first become entitled to retired or retainer pay under subtitle
A of this title after Jan. 7, 2011, and table in subsec. (d) of this section, in effect on the day before Jan. 7, 2011, applicable to the computation or recomputation of retired or retainer pay for persons who first became entitled to retired or retainer pay under subtitle A on or before Jan. 7, 2011, see section 631(d) ofPub. L. 111–383, set out as a note under section
1401 of this title.

Effective Date of 2008 Amendment

Pub. L. 110–181, div. A, title VI, § 646(c),Jan. 28, 2008, 122 Stat. 160, provided that: “The amendments made by subsections (a) and (b) [amending this section and section
6333 of this title] shall take effect as of January 1, 2007, and shall apply with respect to retired pay and retainer pay payable on or after that date.”

Effective Date of 1983 Amendment

Amendment by section 922 ofPub. L. 98–94effective Oct. 1, 1983, see section 922(e) ofPub. L. 98–94, set out as a note under section
1401 of this title.

Amendment by section 923 ofPub. L. 98–94applicable with respect to (1) the computation of retired or retainer pay of any individual who becomes entitled to that pay after Sept. 30, 1983, and (2) the recomputation of retired pay under this section, of any individual who after Sept. 30, 1983, becomes entitled to recompute retired pay under this section, see section 923(g) ofPub. L. 98–94, set out as a note under section
1174 of this title.

Amendment by Pub. L. 90–207effective Oct. 1, 1967, see section 7 ofPub. L. 90–207, set out as a note under section
203 of Title
37, Pay and Allowances of the Uniformed Services.

Effective Date of 1963 Amendment

Amendment by Pub. L. 88–132effective Oct. 1, 1963, see section 14 ofPub. L. 88–132, set out as a note under section
201 of Title
37, Pay and Allowances of the Uniformed Services.

Accrual of Benefits; Prospective Applicability

Pub. L. 102–484, div. A, title VI, § 642(c),Oct. 23, 1992, 106 Stat. 2425, provided that: “No benefits shall accrue for months beginning before the date of the enactment of this Act [Oct. 23, 1992] by reason of the amendments made by this section [amending this section and section
1402a of this title].”

“(a) Notwithstanding the second sentence of footnote 1 of the table contained in section
1402(a) of title
10, United States Code (relating to recomputation of retired pay to reflect later active duty), in the case of a member of the Armed Forces who—

“(1) was voluntarily called or ordered to active duty during the period beginning on October 1, 1963, and ending on September 30, 1971;

“(2) was at the time of such call or order entitled to retired pay or retainer pay;

“(3) served on such active duty under such call or order for a continuous period of at least two years; and

“(4) was released from such active duty before October 1, 1973,

the retired or retainer pay of such member shall be recomputed, as provided in subsection (b), under the rates of basic pay in effect at the time of that release from active duty.

“(b) The retired or retainer pay of a member of the Armed Forces described in subsection (a) shall be the amount determined under section
1402(a) of title
10, United States Code (as modified with respect to such member by subsection (a)), and increased by the amount by which the member’s retired or retainer pay would have been increased during the period beginning on the date of the member’s release from active duty referred to in subsection (a)(4) and ending on the day before the day on which this section becomes effective had subsection (a) applied in the case of the member at the time of that release from active duty.

“(c) This section shall apply only with respect to retired pay and retainer pay payable for months beginning after September 30, 1984, or on or after the date of the enactment of this Act [Oct. 19, 1984], whichever is later.”

Retired Pay and Retainer Pay; Prohibition Against Recomputation Under 1963 Pay Rates; Exceptions; Increments Based on the Greater of a 5 Percent Increase or Recomputation Under 1958 Pay Rates for Members Retired Prior to October 1949 for Reasons Other Than Physical Disability, Members Receiving Retired Pay Under Career Compensation Act of 1949 and Former Chiefs of Staff; Additional 5 Percent Increase for Other Retired Members; Exclusion From Increase of Officers Retired Under Certain Provisions

“(a) Except as provided in section
1402 of title
10, United States Code, the changes made by this Act [see Short Title note under section
201 of Title
37] in the rates of basic pay of members of the uniformed services do not increase the retired pay or retainer pay to which a member or former member of the uniformed services was entitled on the day before the effective date of this Act [Oct. 1, 1963]. However, except for a member covered by section
6331 of title
10, United States Code who became entitled to retainer pay before April 1, 1963, and subject to subsection (j) of this section [set out as a note below], a member or former member of a uniformed service who became entitled to retired pay or retainer pay after March 31, 1963, but before the effective date of this Act [Oct. 1, 1963], is entitled—

“(1) to have the retired pay or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963] recomputed under the rates of basic pay prescribed by section 2 of this Act [amending section
203 of Title
37]; or

“(2) to continue to have that pay computed under the rates of basic pay that were in effect under section
203 of title
37, United States Code, on the day before the effective date of this Act [Oct. 1, 1963], plus the percentage increase provided by subsection (e) of this section;

whichever pay is the greater. For the purposes of the preceding sentence, a member or former member who became entitled to retired pay on April 1, 1963, by virtue of section 1 of the Act of April 23, 1930, ch. 209, as amended (5 U.S.C. 47a) [section
8301 of Title
5], shall be considered as having become entitled to that pay before April 1, 1963.

“(b) A member or former member of a uniformed service who was retired other than for physical disability and who, in accordance with section 511 of the Career Compensation Act of 1949 (63 Stat. 829) [act Oct. 12, 1949, former 10 U.S.C. 580 note], is entitled to retired pay or retainer pay computed by ‘method’ (a) of that section using rates of basic pay that were in effect before October 1, 1949, is entitled—

“(1) to have pay recomputed by ‘method’ (b) of that section using the rates of basic pay that were in effect under that Act on the day before the effective date of this Act [Oct. 1, 1963]; or

“(2) to an increase of 5 percent in the retired pay or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963];

whichever pay is the greater.

“(c) A member or former member of a uniformed service who is entitled to retired pay or retainer pay computed under the rates of basic pay that were in effect under the Career Compensation Act of 1949 before June 1, 1958, including a member or former member who is entitled to retired pay under section 7 (b) or (c) of the Act of May 20, 1958, Public Law 85–422 (72 Stat. 130), is entitled—

“(1) to have that pay recomputed under the rates of basic pay that were in effect under that Act on the day before the effective date of this Act [Oct. 1, 1963]; or

“(2) to an increase of 5 percent in the retired pay or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963];

whichever pay is the greater.

“(d) A member or former member of a uniformed service who was entitled to retired pay on the day before the effective date of this Act [Oct. 1, 1963] and who served as Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or Commandant of the Marine Corps is entitled—

“(1) to have his retired pay recomputed under the formula for computing retired pay applicable to him—

“(A) when he retired; or

“(B) if he served on active duty after he retired and his retired pay was recomputed by reason of that service, when his retired pay was so recomputed;

using as his rate of basic pay the rate of basic pay prescribed for officers serving on active duty in those positions on June 1, 1958, by footnote 1 to table for commissioned officers in section 201(a) of the Career Compensation Act of 1949, as amended (72 Stat. 122) [see section
203 of Title
37]; or

“(2) to an increase of 5 percent in the retired pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963];

whichever pay is the greater.

“(e) A member or former member of a uniformed service who was entitled to retired pay or retainer pay on the day before the effective date of this Act [Oct. 1, 1963], other than a member or former member who is covered by subsection (b), (c), or (d) of this section, is entitled to an increase of 5 percent in the retired or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963].

“(f) Notwithstanding any other provision of law, a member of an armed force who was entitled to pay and allowances under any of the following provisions of law on the day before the effective date of this Act [Oct. 1, 1963] shall continue to receive the pay and allowances to which he was entitled on that day:

Pub. L. 88–132, § 5(j),Oct. 2, 1963, 77 Stat. 214, provided that: “A member or former member of a uniformed service is not entitled to an increase in his retired pay or retainer pay because of the enactment of this Act [see Short Title note set out under section
201 of Title
37] for any period before the effective date of this Act [Oct. 1, 1963].”

Savings Provision

Pub. L. 88–132, § 5(l)(2),Oct. 2, 1963, 77 Stat. 215, provided that: “Notwithstanding paragraph (1) of this subsection [amending this section], and unless otherwise entitled to higher retired pay or retainer pay, a member of a uniformed service who is on active duty (other than for training) on the effective date of this Act [Oct. 1, 1963], who was entitled to retired pay or retainer pay before he entered on that duty, and who is released from that duty on or after the effective date of this Act after having served on that duty for a continuous period of at least one year shall, upon that release from active duty, be entitled to recompute his retired pay or retainer pay under the table in section
1402 of title
10, United States Code [this section], subject to section
6483(c) of title
10, as that table and that section were in effect on the day before the effective date of this Act, using rates of basic pay prescribed by this Act [section
203 of Title
37].”

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